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BUAD 331 Exam 2 2026 |
Comprehensive Q&A For Certification
Success
What is the best tactic purchasing can use in order to meet the material and
support needs of its internal customers?
A. Provide an uninterrupted flow of the appropriate quality materials and services.
B. Buy from suppliers that are geographically close to the location of internal
customers.
C. Find the lowest possible price through low-cost country sourcing.
D. Minimize the number of suppliers in the supplier pool.
E. Automate the purchasing process with the suppliers. - correct-answer -A.
Provide an uninterrupted flow of the appropriate quality materials and services
Both objective and subjective measures are used to measure the performance of
suppliers. Which of the following is NOT true regarding objective and subjective
measures?
A. Objective (Hard) Measures are quantitative
B. Subjective (Soft) Measures are based on preference or judgment
C. An example of a subjective measure is supplier on-time delivery
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D. Subjective measures can be biased and dependent on the user.
E. All of the above are true. - correct-answer -C. An example of a subjective
measure is supplier on-time delivery
What term is best described as the process of combining purchasing requirements
across operating units in order to capitalize on suppliers' fixed cost allocations and
improvements in suppliers' productivity?
A. Leveraging
B. Specifying
C. Spot Buying
D. Strategizing
E. Contracting - correct-answer -A. Leveraging
You are a supply manager at a large US bank and you are responsible for buying
marketing and creative services (advertising, etc.). The marketing services
category represents a substantial amount of procurement spend and the suppliers
that compete in this industry tend to have very different capabilities. Consider the
Kraljic matrix and classify this purchase.
A. Leverage item.
B. Bottleneck item.
C. Strategic item.
D. Non-critical item.
E. None of these are the appropriate classification for this component. - correct-
answer -C. Strategic item.
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The purchasing function contributes to the type and bottom line of an
organization.
A. True
B. False - correct-answer -A. True
Which of the following is generally NOT true about supply management and the
bottom line (net profit to the firm)?
A. Purchased items account for a large percentage of the cost of goods sold.
Hence, a reduction in cost of purchased goods has a major impact on the bottom
line
B. A Euro increase in sales is equivalent to a Euro decrease in materials cost in
impacting the bottom line
C. Outsourcing can allow firms to focus on their core competencies, possibly
reducing waste, which then has the potential to improve the bottom line
D. A dollar saved in materials cost is usually considered a dollar increase in net
income, which directly translates into bottom line savings
E. All of the above are true. - correct-answer -B. A Euro increase in sales is
equivalent to a Euro decrease in materials cost in impacting the bottom line
As a category specialist, you need to develop expertise on which of the following?
A. Price
B. Data retrieval
BUAD 331 Exam 2 2026 |
Comprehensive Q&A For Certification
Success
What is the best tactic purchasing can use in order to meet the material and
support needs of its internal customers?
A. Provide an uninterrupted flow of the appropriate quality materials and services.
B. Buy from suppliers that are geographically close to the location of internal
customers.
C. Find the lowest possible price through low-cost country sourcing.
D. Minimize the number of suppliers in the supplier pool.
E. Automate the purchasing process with the suppliers. - correct-answer -A.
Provide an uninterrupted flow of the appropriate quality materials and services
Both objective and subjective measures are used to measure the performance of
suppliers. Which of the following is NOT true regarding objective and subjective
measures?
A. Objective (Hard) Measures are quantitative
B. Subjective (Soft) Measures are based on preference or judgment
C. An example of a subjective measure is supplier on-time delivery
,2|Page
D. Subjective measures can be biased and dependent on the user.
E. All of the above are true. - correct-answer -C. An example of a subjective
measure is supplier on-time delivery
What term is best described as the process of combining purchasing requirements
across operating units in order to capitalize on suppliers' fixed cost allocations and
improvements in suppliers' productivity?
A. Leveraging
B. Specifying
C. Spot Buying
D. Strategizing
E. Contracting - correct-answer -A. Leveraging
You are a supply manager at a large US bank and you are responsible for buying
marketing and creative services (advertising, etc.). The marketing services
category represents a substantial amount of procurement spend and the suppliers
that compete in this industry tend to have very different capabilities. Consider the
Kraljic matrix and classify this purchase.
A. Leverage item.
B. Bottleneck item.
C. Strategic item.
D. Non-critical item.
E. None of these are the appropriate classification for this component. - correct-
answer -C. Strategic item.
, 3|Page
The purchasing function contributes to the type and bottom line of an
organization.
A. True
B. False - correct-answer -A. True
Which of the following is generally NOT true about supply management and the
bottom line (net profit to the firm)?
A. Purchased items account for a large percentage of the cost of goods sold.
Hence, a reduction in cost of purchased goods has a major impact on the bottom
line
B. A Euro increase in sales is equivalent to a Euro decrease in materials cost in
impacting the bottom line
C. Outsourcing can allow firms to focus on their core competencies, possibly
reducing waste, which then has the potential to improve the bottom line
D. A dollar saved in materials cost is usually considered a dollar increase in net
income, which directly translates into bottom line savings
E. All of the above are true. - correct-answer -B. A Euro increase in sales is
equivalent to a Euro decrease in materials cost in impacting the bottom line
As a category specialist, you need to develop expertise on which of the following?
A. Price
B. Data retrieval
